2022 (3) TMI 1065

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....ng various information and explanation. All the information required by the Assessing officer has been duly filed during the course of assessment proceeding. The Assessing officer while passing the order made the addition of i) Rs. 6,12,285/- under the head interest on loans and advances ii) Rs. 10,15,875/- by disallowing expenses claimed under the head Brokerage and Commission expenses on ad hoc basis iii) Rs. 1,15,46,459/- by disallowing expenses claimed under the head other expenses on ad hoc basis iv) Rs. 56,83,585/- being 1/5th of the total advance received from customer on ad hoc basis v) Rs. 24,08,621/- being 1/10 of the other liabilities shown in the Balance sheet on ad hoc basis ignoring the facts of the case, statutory provisions ....

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....re business advances and as such are related to business purposes. As such the observation made by the Assessing officer that advances are not for business purposes are contrary to the facts on record. 6. The Balance sheet of the assessee company for FY 2013-14 as per which the shareholder fund is Rs. 16.12 crore and as such the appellant has sufficient non-interest bearing fund. Thus, the assessee has been found to be having enough own non-interest bearing fund. 6. Hence, we hold that no disallowance is called for on account of loans and advances given is called for. Ad hoc disallowance: 7. The Assessing officer without appreciating the evidences, explanations and details furnished during the course of assessment proceeding. Th....

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....e summarily disallowed. Such a disallowance cannot be sustained in absence of any valid basis. The disallowances are liable to be deleted. 11. In this regard the Co-ordinate Bench of Tribunal in the case of Tripat Kaur vs. ACIT, Cir 22(1), New Delhi ITA No. 3244/Delhi/2012 held as under: "We have heard the rival contentions in light of the material produced. We find that the addition on account of traveling expenses was totally based on surmises and conjectures. Assessing Officer has not brought on record any cogent basis as to why this expenditure was to be disallowed. It is not the case that expenditure was considered to be bogus or any shortcoming in the vouchers in this regard was observed by the Revenue. Under the circumsta....